ECB Governing Council member Ignazio Visco told Bloomberg that, “we have to avoid tapering before the time comes that we’re really confident we’re back where we should.” He emphasized, “we really have to show to be determined”.
“Financial conditions are to remain favorable even if we have signs of some price increases that are above the target that the central banks have set,” he said.
“I don’t expect monetary policy to be tightened for a long period,” Visco added, as there is still “substantial slack” in the economy. Also, there are risks of another wave of coronavirus infections. Nevertheless, there is no discussion on extending the PEPP beyond end date in March.
